The role of digital payments in the Mexican Policy of Financial Inclusion (PNIF 2020-2024)

On March 11th, 2020 was presented the National Policy of Financial Inclusion by the Central Bank, Secretariat of Public Education and Secretariat of Finance, a 156 pages document with the information of the current situation where only 37% of the population have access to a financial service and the plan to increase it to 77% by the end of 2024.

What I found interesting beyond the tactical plan is the vision of the government of financial inclusion in 2030:

“Mexico has achieve that the majority of people and businesses are financially included and have a good financial health. All Mexicans, no matter age, gender, income, labour situation or place they live they can access and use product of services from the financial system with better knowledge, abilities and economic-financial aptitudes. Most of the Mexican employees receive their payroll or social programs through accounts and make digital payments and money transfers on daily basis including public and private transport.

Biometric information is used to identify persons to open accounts, get loans or hire insurances and also to authenticate operations like digital payments, this is possible to a data-base that contains a unique and confident biometric information.

Stores that only accepted cash now accept payments through cards or apps from digital devices like smartphones, A lot of the small merchants now have access to other digital financial products and services like loans as a result of the operative and financial history created.

The financial education has change habits and behaviors of the people. The population os scholar age develop their financial competencies, receive financial education since elementary school and learn concepts that will help them to make informed decision through their life.

The digitalization has been a link to reach more people, businesses and places, given the internet coverage growth and financial infrastructure in all municipalities.”

It is not something new that digital transformation and education are and will be the most important pillars on the financial inclusion strategy. On one side the offer of financial product and services is changing from physical to digital, fintechs have a very important role. on the other side the demand of these products will increase when people are more educated and has access to internet.

Related to payments I would like to share some data included in the PNIF 2020-2024

Finally the summary of the objectives and strategies of the PNIF are:

Facilitate access to financial products and services.

Increment digital payments.

Strengthen the infrastructure to give access to financial products and services.

Increment the financial competencies of the population.

Strengthen the access to information tools and financial protection mechanisms.

Favor access to vulnerable people like women, migrants, elderly people and rural population.